S&P 500
7,615.40
-0.09%
Dow Jones
51,321.50
-0.10%
Nasdaq 100
30,653.20
-0.20%
Russell 2000
2,931.58
-0.05%
FTSE 100
10,377.00
-0.11%
Nikkei 225
68,476.70
+1.44%

Investing

Cree Raising Cash (CREE)

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published

Invalid Image
Cree, Inc. (NASDAQ: CREE) is raising cash.  The company, which makes lighting-class LEDs, LED lighting, and semiconductor solutions for wireless and power applications, announced that it is selling 11,000,000 shares of its common stock.   Before any price adjustments this comes to a level of $422.4 million.

Cree said that it intends to use the proceeds for an anticipated capital spending of approximately $150 million during its fiscal-2010 and for additional future capital expenditure needs.  Of course there is the “for general corporate purposes” for the remainder of the capital.

J.P. Morgan is the only book-running manager and Bank of America Merrill Lynch is the lead manager.  Co-managers are listed as Piper Jaffray, Morgan Keegan, Oppenheimer and America’s Growth Capital.  Underwriters will have a 30-day option for the underwriters to purchase up to 1,650,000 additional shares if they choose.

As far as how this $400+ million compares to the overall size, the market cap before adjusting for this dilution is listed as $3.45 billion.

Cree shares closed up 2,5% at $38.40 today, however are trading down 4.1% at $36.81.  The 52-week trading range was almost violated on the high-end today as that 52-week range is $12.57 to $38.97.  After a quick review, this is not just near a 52-week high.  This is actually within striking distance of a 5-year high.

JON C. OGG

Follow 24/7 Wall St. on Google
Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Douglas A. McIntyre |

Pepco Sells Shares Near Bottom (POM)

Pepco Holdings, Inc. (NYSE: POM) is doing fairly well considering the company raised more than $200 through a secondary offering…

Douglas A. McIntyre |

Kimco’s Huge Stock Offering (KIM)

Kimco Realty Corporation (NYSE: KIM) has priced its huge secondary offering of common stock.  The size was a lofty 91,500,000…

Jon C. Ogg |

Waves and Waves of Secondary Pricings (CVGI, CPA, G, HIG, HRP, NLST, SB, TSL)

This week week may have been a record for any recent period on how many secondary offerings came to market…

Douglas A. McIntyre |

Boardwalk Pipeline Hit On Secondary (BWP)

Boardwalk Pipeline Partners, LP (NYSE: BWP) has priced its planned and proposed secondary offering of 10,000,000 units representing limited partner…

Cree’s Dilemma: Are LED Lights Just Too Good for Consumers?
Jon C. Ogg |

Cree’s Dilemma: Are LED Lights Just Too Good for Consumers?

Is it possible that LED lights are just too good for the companies that make money by selling things and…

Paul Ausick |

Cree Brings Risks Back for All LED Players

ThinkstockFollowing a disappointing outlook offered on Tuesday night following a near-miss earnings report,  Cree Inc. (NASDAQ: CREE) took several ratings…

Paul Ausick |

Cree’s Mixed Results Darkened by Outlook

ThinkstockCree Inc. (NASDAQ: CREE) reported first fiscal quarter 2014 results after markets closed on Tuesday. For the quarter, the LED-lighting…

Jon C. Ogg |

ARIAD Secures Much-Needed Capital for Trials, Commercialization, and Growth (ARIA)

ARIAD Pharmaceuticals, Inc. (NASDAQ: ARIA) is raising cash to help support the commercialization of ponatinib in patients with resistant or…

Jon C. Ogg |

Major Wave of Secondaries Hitting Market (DHR, VELT, BBEP, KMP, CPF, MHR, TCO, FVE)

Secondaries, Secondaries, and more Secondaries!!! Companies must be nervous about the market and picking up capital when and where they…

Top Gaining Stocks

Hewlett Packard Enterprise
HPE • Vol: 153,197,465
Enphase Energy
ENPH • Vol: 8,360,053
Corning
GLW • Vol: 18,152,646
Alexandria Real Estate Equities
ARE • Vol: 4,337,015
Aptiv
APTV • Vol: 6,761,325

Top Losing Stocks

Trade Desk
TTD • Vol: 21,905,513
Intuit
INTU • Vol: 7,383,018
Coterra Energy
CTRA • Vol: 73,319,495
Cboe Global Markets
CBOE • Vol: 5,000,011
HP
HPQ • Vol: 29,259,826